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π Market Kya Lagta Hai
Nifty 50 π’ +0.03%
Midcap 150 π’ +0.33%
Smallcap 250 π’ +0.48%
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Sectors in Focus
Major Corporate Developments This Week
- Gensol Engineering order book at the beginning of FY25 is at Rs. 1,780 cr.
- Adani Wilmar: Company registered a double-digit volume growth in both the edible oils and foods business in the March quarter.
- Ramco Systems - Korean Air signed a multi-million dollar deal with the company to technologically transform its new engine maintenance complex.
- Dixon Technologies to acquire up to 56% Stake in Ismartu India in two tranches.
- Maruti Suzuki India commissioned another vehicle assembly line at its Manesar facility. This assembly line has been added to the existing Plant-A of the 3 manufacturing plants at Manesar. The new vehicle assembly line has the capability to manufacture 100,000 units per annum. With this additional assembly line, the total manufacturing capability at Manesar stands at 900,000 vehicles per annum.
- Strides Pharma Science Ltd announced that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Fluoxetine Tabs 10 mg and 20 mg, from the United States Food & Drug Administration (USFDA).
- Exide Industries - company signed pact with Hyundai, Kia for EV battery localisation.
- Godrej Properties - the real estate player sold over 1,050 homes worth over Rs. 3,000 crores within three days of launch of its new project at Gurugram.
- JSW Infrastructure announced JSW JNPT Liquid Terminal Pvt Ltd has entered into a concession agreement on April 08, 2024 with Jawaharlal Nehru Port Authority for equipping, operation, maintenance and transfer of liquid cargo berths LB3 and LB4 at Jawaharlal Nehru Port through Public Pvt Partnership Mode.
- Birla Pivot, Aditya Birla Groupβs B2B e-commerce platform for building materials, has hit a remarkable milestone of achieving Rs. 1,000 crore revenue in its first year of operations - FY24. This achievement has placed Birla Pivot, the business unit of Grasim Industries, as one of the fastest-growing entities to achieve such a milestone in the B2B e-commerce space.
- Som Distilleries & Breweries commenced commercial production on the increased capacity at our Karnataka plant. After the increase our capacity now stands at 140 lakh cases of beer per annum from the 90.00 lakhs capacity installed earlier.
- NALCO: KABIL and CSIR-IMMT sign MoU for technical & knowledge cooperation for critical minerals.
- Uno Minda: Company is set for new βΉ542-crore Greenfield alloy wheel plant in Haryana.
- Maharashtra seamless: Company gets order worth Rs 674 crore from ONGC for supply of pipes.
- Protean eGov: Company likely to launch QIP, aims to raise up to βΉ245 crore.
- Shilpa Medicare: Board approves opening of the QIP, floor price at βΉ477.33/share.
- Indiabulls Real Estate: Company to raise Rs 3911cr via preferential allotment-Floor price Rs 111.51/share.
- Voltas: Company posts highest-ever AC sale of two million units in FY24 aided by consistent demand for cooling products.
- Cochin Shipyard: Company signs MSRA with US Navy to repair US Naval Vessels under Military Sealift Command.
TechnoFunda Investing Quote from Legends -
Howard Marks emphasizes the nuanced approach required in investing, which he views as a practice grounded in probabilistic decision-making. This perspective involves assessing potential outcomes based on likelihood rather than certainty, continually updating one's strategies in response to new information. Marks highlights the absence of certainty in the financial markets, suggesting that investors should always adapt their strategies to reflect changing probabilities and emerging data, thus blending flexibility with informed decision-making for effective risk management and opportunity identification.
π Book I'm Reading This Week
Parag Parikh, a seasoned broker and expert, took up this daunting task of understanding and demystifying investing in the stock market. Stocks to Riches is a distillate of his experience. It simplifies investing in stocks and provides key perspectives for a lay investor venturing into the market. At the end of the day, Stocks to Riches helps the retail investor make money by following the time-tested and proven guidelines provided in the book. A must read for brokers, analysts and retail investors.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
Understanding the Cup & Handle Pattern
Essential Features of the Cup-With-Handle Pattern - A good cup-with-handle should truly look like the silhouette of a nicely formed teacup. The full pattern should develop over a minimum of seven weeks, with the cup alone lasting no less than six weeks. The handle formation should take at least five days but should not outlast the cup in duration or depth, where a drop between 10% and 15% is typical. The handle always shows a smaller decline from high to low; it represents a final shakeout of uncommitted holders, sending those shares into sturdier hands in the market. During bear markets, some good cup-with-handle bases show a large, double-digit decline within the handle. But again, it should not exceed the drop within the cup.
Positioning and Slope of the Handle - The handle should form in the upper part of the entire pattern. If it's too low, it's flawed. The handle should also show a downward slope along at least a portion of its price lows, not an upward one. An upward-sloping handle is flawed; it represents weak demand as new buyers move into the stock at a trickling pace. During the stock's actual breakout, you want to see a new wave of buyers coming in at a torrid pace, not a trickling one. Also, a steep, high-volume decline should put you on alert. You don't want to buy a stock that institutional investors couldn't wait to unload at any price.
Volume Considerations - Volume levels should taper off at the lows of the cup and remain subdued in the handle, indicating consolidation. Excessive volume during the handleβs formation or an erratic base suggests unresolved price discovery issues.
The Critical Buy Point - The optimal purchase point is typically situated at the peak of the handle, marking the culmination of the pattern formation and serving as the trigger for entry.
Trading Volume During the Breakout - A significant increase in trading volume is desirable during the breakout, ideally 40% higher than the 50-day average. For smaller stocks, expect volumes to potentially double or even triple during a strong breakout phase.
This structured approach to recognizing and trading the Cup-With-Handle pattern can significantly enhance an investorβs ability to capitalize on market opportunities by utilizing historical recurrence and psychological insights within stock movements.
ποΈ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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